Consultation on UK policy towards renewable energy

UK Government consultation (289 pages, 2.1M PDF) on policy towards renewable energy. The main driver of the process appears to be a need to produce a UK Renewable Energy Strategy in 2009 to meet the "UK share" of an EU renewable energy target.

The document proposes to introduce some direct financial support like a feed-in tariff for microgeneration heat and electricity, but rejects replacing the renewables obligation schemes with a general feed-in tariff.

The previously proposed changes to the renewables obligations, including banding, are described as still “subject to Parliamentary and State Aid approval” and “expected to become effective in April 2009”.

The document includes an open question on possible further changes to the renewables obligation schemes, with a statement of policy in favour of grandfathering of current levels of support for pre-reform plants, with details (such as, perhaps, grandfathering down) to be worked out later. The documents floats the idea of further "banding" the scheme by offering technology-specific levels of subsidies (or even “several bands within a single technology”).

The use of renewable energy in transport and heating is also discussed.

Responses by Friday 26 September 2008.

Ofgem and the Government have also published the conclusions (61 pages, PDF) of the transmission access review. This suggests changes to the processes for developing the GB transmission networks to accommodate new renewable generation.

Update: There is also some draft environmental and social guidance for Ofgem (21 pages, PDF) out for consultation.

For further information or advice please contact Franck Latrémolière.

Filed under DTI/BERR, Electricity, State aid.

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